Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - RIGHTSCORP, INC. | form8k.htm |
| EX-16 - EXHIBIT 16 - RIGHTSCORP, INC. | ex16.htm |
| EX-2.1 - EXHIBIT 2.1 - RIGHTSCORP, INC. | ex2-1.htm |
| EX-10.3 - EXHIBIT 10.3 - RIGHTSCORP, INC. | ex10-3.htm |
| EX-10.2 - EXHIBIT 10.2 - RIGHTSCORP, INC. | ex10-2.htm |
| EX-10.1 - EXHIBIT 10.1 - RIGHTSCORP, INC. | ex10-1.htm |
RIGHTSCORP, INC.
Notes to Unaudited Pro forma Financial Statements
Pro Forma Disclosures (Unaudited)
The following statements represent pro forma disclosures applicable to the Merger Agreement described above. The unaudited pro forma condensed balance sheets as of December 31, 2012 and June 30, 2013, are based on the balance sheets of Rightscorp, Inc., a Nevada corporation (formerly Stevia Agritech Corp.) (hereinafter “Stevia”)and Rightscorp Merger Acquisition Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Stevia (the “Subsidiary”) and Rightscorp, Inc., a Delaware corporation (“Rightscorp Delaware” or “Rightscorp”)and as of December 31, 2012 and September 30, 2012, and June 30, 2013 and June 30, 2013, respectively.
The unaudited pro forma statement of operations for the year ended December 31, 2012 is based on the statement of operations for Rightscorp for the year ended December 31, 2012 and the statement of operations of Stevia for the year ended September 30, 2012. The unaudited pro forma statement of operations for the period ended June 30, 2013 is based on the statement of operations of Rightscorp and Stevia as of June 30, 2013 and March 31, 2013, respectively.
The fiscal year end of Rightscorp is December 31, and the fiscal year end of Stevia is September 30.
On October 25 , 2013, Stevia entered into an Agreement and Plan of Merger (the “Merger Agreement”), with Rightscorp, and pursuant to the Merger Agreement, which closed on October 25 , 2013 (the “Closing Date”), (i) the Subsidiary merged into Rightscorp, such that Rightscorp became a wholly-owned subsidiary of Stevia, (ii) Stevia issued (a) 45,347,102 shares (the “Acquisition Shares”), of their common stock to the shareholders of Rightscorp representing approximately 65.9 % of Stevia’s aggregate issued and outstanding common stock following the closing of the Merger Agreement (following the Share Cancellation and the Private Placement, each as defined below), in exchange for all of the issued and outstanding shares of common stock of Rightscorp, (b) outstanding warrants to purchase 1,831,969 shares of common stock of Rightscorp were converted into outstanding warrants to purchase 5,312,703 shares of common stock of Stevia, and (iv) outstanding convertible notes in the aggregate amount of $233,844 (including outstanding principal and accrued interest thereon) of Rightscorp were amended to be convertible into shares of common stock of Stevia at a conversion price of $0.1276.
The pro forma financial statements contain the adjustments and assumptions described below.
Rightscorp, Inc.
Unaudited Combined Pro Forma Balance Sheet
| Rightscorp, Inc. | Stevia Agritech Corp. | |||||||||||||||
| For the Year Ended | For the Year Ended | Pro forma | Consolidated | |||||||||||||
| December 31, 2012 | September 30, 2012 | Adjustments | Pro forma | |||||||||||||
| Assets | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash | $ | 10,049 | $ | - | $ | - | $ | 10,049 | ||||||||
| Prepaid expenses | 28,883 | - | - | 28,883 | ||||||||||||
| Other current asset | 5,698 | - | - | 5,698 | ||||||||||||
| Total Current Assets | 44,630 | - | - | 44,630 | ||||||||||||
| Other Assets | ||||||||||||||||
| Fixed assets, net | 28,851 | - | - | 28,851 | ||||||||||||
| Intangible assets, net | 50,700 | - | - | 50,700 | ||||||||||||
| Total Assets | $ | 124,181 | $ | - | $ | - | $ | 124,181 | ||||||||
| Liabilities and Stockholders’ Deficit | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts payable and accrued liabilities | $ | 514,874 | $ | - | $ | - | $ | 514,874 | ||||||||
| Convertible notes payable, net of discount of $101,551 | 518,975 | - | - | 518,975 | ||||||||||||
| Note payable | - | 16,638 | - | 16,638 | ||||||||||||
| Total Liabilities | 1,033,849 | 16,638 | - | 1,050,487 | ||||||||||||
| Stockholder’s Deficit | ||||||||||||||||
| Preferred stock, $.001 par value; 10,000,000 shares authorized; 3,220,000 and 3,020,000 shares issued and shares issued and outstanding as of December 31, 2012 and December 31, 2011, respectively. | 3,220 | - | - | 3,220 | ||||||||||||
| Common stock, $.001 par value; 250,000,000 shares authorized; 9,660,135 and 9,525,000 shares issued and outstanding as of December 31, 2012 and December 31, 2011, respectively. | 9,660 | 2,900 | (7,891) (2) | 4,669 | ||||||||||||
| Additional paid in capital | 1,275,345 | 49,600 | (61,247) (3,4) | 1,263,698 | ||||||||||||
| Accumulated deficit | (2,197,893 | ) | (69,138 | ) | 69,138 (3,4) | (2,197,893 | ) | |||||||||
| Total stockholders’ deficit | (909,668 | ) | (16,638 | ) | 0 | (926,306 | ) | |||||||||
| Total Liabilities and Stockholders’ Deficit | $ | 124,181 | $ | - | $ | 0 | $ | 124,181 | ||||||||
See accompanying notes to unaudited pro forma financial statements.
Rightscorp, Inc.
Unaudited Combined Pro Forma Balance Sheet
| Rightscorp, Inc. | Stevia Agritech Corp. | |||||||||||||||
| Six Months Ended | Nine Months Ended | Pro forma | Consolidated | |||||||||||||
| June 30, 2013 | June 30, 2013 | Adjustments | Pro forma | |||||||||||||
| Assets | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash | $ | 173,460 | $ | - | $ | 233,844 | $ | 407,304 | ||||||||
| Prepaid expenses | 25,569 | - | - | 25,569 | ||||||||||||
| Promissory note receivable | - | 200,000 | (200,000 | )(1) | - | |||||||||||
| Total Current Assets | 199,029 | 200,000 | 33,844 | 432,873 | ||||||||||||
| Other Assets | ||||||||||||||||
| Fixed assets, net | 30,457 | - | - | 30,457 | ||||||||||||
| Intangible assets, net | 42,250 | - | - | 42,250 | ||||||||||||
| Total Assets | $ | 271,736 | $ | 200,000 | $ | 33,844 | $ | 505,580 | ||||||||
| Liabilities and Stockholders’ Deficit | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts payable and accrued liabilities | $ | 752,520 | $ | 2,119 | $ | - | $ | 754,639 | ||||||||
| Convertible notes payable, net of discount of $101,551 | 809,729 | - | - | 809,729 | ||||||||||||
| Note payable | 200,000 | 47,160 | (200,000 | )(1) | 47,160 | |||||||||||
| Total Current Liabilities | 1,762,249 | 49,279 | (200,000 | ) | 1,611,528 | |||||||||||
| Total Liabilities | 1,762,249 | 49,279 | (200,000 | ) | 1,611,528 | |||||||||||
| Stockholder’s Deficit | ||||||||||||||||
| Preferred stock, $.001 par value; 10,000,000 shares authorized; 3,220,000 and 3,020,000 shares issued and shares issued and outstanding as of December 31, 2012 and December 31, 2011, respectively. | 3,220 | - | - | 3,220 | ||||||||||||
| Common stock, $.001 par value; 250,000,000 shares authorized; 9,876,351 and 9,525,000 shares issued and outstanding as of December 31, 2012 and December 31, 2011, respectively. | 9,876 | 2,900 | (8,107 | )(2,3) | 4,669 | |||||||||||
| Additional paid in capital | 1,489,579 | 49,600 | 140,172 | (4) | 1,679,351 | |||||||||||
| Common stock subscribed | - | 200,000 | - | 200,000 | ||||||||||||
| Accumulated deficit | (2,993,188 | ) | (101,779 | ) | 101,779 | (4) | (2,993,188 | ) | ||||||||
| Total stockholders’ deficit | (1,490,513 | ) | 150,721 | 233,844 | (1,105,948 | ) | ||||||||||
| Total Liabilities and Stockholders’ Deficit | $ | 271,736 | $ | 200,000 | $ | 33,844 | $ | 505,580 | ||||||||
See accompanying notes to unaudited pro forma financial statements.
Rightscorp, Inc.
Unaudited Combined Pro Forma Statements of Operations
| Rightscorp, Inc. | Stevia Agritech Corp. | |||||||||||||||
| For the Year Ended | For the Year Ended | Pro forma | Consolidated | |||||||||||||
| December 31, 2012 | September 30, 2012 | Adjustments | Pro forma | |||||||||||||
| Revenue | $ | 96,565 | $ | - | $ | - | $ | 96,565 | ||||||||
| Operating expenses: | ||||||||||||||||
| Copyright Holder fees | 49,023 | - | - | 49,023 | ||||||||||||
| General and administrative | 1,028,438 | 37,321 | (37,321 | )(5) | 1,028,438 | |||||||||||
| Sales and marketing | 69,614 | - | - | 69,614 | ||||||||||||
| Depreciation and amortization | 24,647 | - | - | 24,647 | ||||||||||||
| Total operating expenses | 1,171,722 | 37,321 | (37,321 | ) | 1,171,722 | |||||||||||
| Loss from operations | (1,075,157 | ) | (37,321 | ) | 37,321 | (1,075,157 | ) | |||||||||
| Other income (expenses): | ||||||||||||||||
| Interest expense | (124,166 | ) | - | - | (124,166 | ) | ||||||||||
| Total non-operating expenses | (124,166 | ) | - | - | (124,166 | ) | ||||||||||
| Loss from operations before income taxes | (1,199,323 | ) | (37,321 | ) | 37,321 | (1,199,323 | ) | |||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net loss | $ | (1,199,323 | ) | $ | (37,321 | ) | $ | 37,321 | $ | (1,199,323 | ) | |||||
| Net loss per share – basic and diluted | $ | (0.13 | ) | $ | (0.00 | ) | $ | (0.02 | ) | |||||||
| Weighted average common shares – basic and diluted | 9,558,321 | 60,184,932 | 69,743,253 | |||||||||||||
Rightscorp, Inc.
Unaudited Combined Pro Forma Statements of Operations
| Rightscorp, Inc. | Stevia Agritech Corp. | |||||||||||||||
| Six Months Ended | Six Months Ended | Pro forma | Consolidated | |||||||||||||
| June 30, 2013 | March 31, 2013 | Adjustments | Pro forma | |||||||||||||
| Revenue | $ | 101,926 | $ | - | $ | - | $ | 101,926 | ||||||||
| Operating expenses: | ||||||||||||||||
| Copyright Holder fees | 50,963 | - | - | 50,963 | ||||||||||||
| General and administrative | 647,861 | 24,008 | (24,008) (5) | 647,861 | ||||||||||||
| Sales and marketing | 42,718 | - | - | 42,718 | ||||||||||||
| Depreciation and amortization | 15,542 | - | - | 15,542 | ||||||||||||
| Total operating expenses | 757,084 | 24,008 | (24,008 | ) | 757,084 | |||||||||||
| Loss from operations | (655,158 | ) | (24,008 | ) | 24,008 | (655,158 | ) | |||||||||
| Other income (expenses): | ||||||||||||||||
| Interest expense | (140,137 | ) | - | - | (140,137 | ) | ||||||||||
| Total non-operating expenses | (140,137 | ) | - | - | (140,137 | ) | ||||||||||
| Loss from operations before income taxes | (795,295 | ) | (24,008 | ) | 24,008 | (795,295 | ) | |||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net loss | $ | (795,295 | ) | $ | (24,008 | ) | $ | 24,008 | $ | (795,295 | ) | |||||
| Net loss per share – basic and diluted | $ | (0.08 | ) | $ | (0.00 | ) | $ | (0.01 | ) | |||||||
| Weighted average common shares – basic and diluted | 9,769,144 | 60,184,932 | 69,954,076 | |||||||||||||
RIGHTSCORP, INC.
Notes to Unaudited Pro Forma Combined Financial Statements
Pro forma adjustments:
The unaudited pro forma condensed balance sheet and statements of operations reflect the following adjustments associated with the acquisition of Rightscorp by Stevia:
| (1) | Eliminate the intercompany balance of $200,000 for monies extended to Rightscorp by Stevia. |
| (2) | Represents the issuance of 45,347,102 shares at a par value of $0.000067 of Stevia for 9,876,351 common shares of Rightscorp. |
| (3) | Represents the conversion of the outstanding convertible notes in the aggregate amount of $233,844 (including outstanding principal and accrued interest thereon) of Rightscorp were amended to be convertible into shares of common stock of the Company at a conversion price of $0.1276, or 1,832,633 shares. |
| (4) | Represents the consolidation of the operating performance of Stevia into Rightscorp. |
| (5) | Eliminated as a result of the Merger Agreement. |